SAP plans to invest more than $175 million in Việt Nam

SAP plans to invest more than $175 million in Việt Nam

German enterprise applications and business AI company SAP has announced the launch of SAP Labs Vietnam and plans to invest over 150 million euros (US$175 million) in the digital innovation hub over the next five years.

Deputy Prime Minister Nguyễn Chí Dũng and SAP executives at the opening ceremony of SAP Labs Vietnam in HCM City on Thursday. – Photo Courtesy of vneconomy.vn

It becomes the second SAP Labs in Southeast Asia after the one in Singapore and makes Việt Nam the 20th country to have one.

Speaking at the opening ceremony, Deputy Prime Minister Nguyễn Chí Dũng referred to the significance of science, technology, innovation, and digital transformation, commended the launch of SAP Labs Vietnam and expressed optimism that SAP would efficiently leverage the centre and expand it in future.

The new hub will play a key role in supporting SAP’s product development in core areas, including sustainable digital supply chains and intelligent enterprise solutions, enabled by AI.

“SAP Labs Vietnam is more than just a research and development centre – it is a catalyst for transformation in one of the most dynamic tech markets in Asia,” Thomas Saueressig, member of the executive board of SAP SE, customer services & delivery, said. 

“Việt Nam’s proven track record in delivering tech innovation as well as its fast-growing base of software engineers made HCM City a fitting choice for our next SAP Labs location.”

With more than 200 employees already hired since September 2024, SAP Labs Vietnam is expected to increase its payroll to 500 by 2027.

It is working closely with top universities in HCM City to nurture local tech talent and provide career pathways in advanced areas like data analytics, AI and software engineering.

Manik Saha, managing director of SAP Labs Singapore & Vietnam, said: “We are not just opening an office, we are building a talent ecosystem. That means bringing together Việt Nam’s most creative and knowledgeable tech experts as well as collaborating with the country’s top universities to foster long-term career opportunities for the next generation of innovators.”

A global leader in enterprise applications and business AI, SAP has worked with some of the world’s top companies for more than 50 years, helping them unite business-critical operations spanning finance, procurement, HR, supply chain, and customer experience.

The investment reflects the country’s growing strategic importance to SAP’s global business and the increasing demand for localised innovation in key markets such as Korea and Japan.

“Việt Nam’s rapid digital transformation and its young, tech-savvy workforce make it a vital pillar in SAP’s global vision for sustainable growth and inclusive innovation,” Việt Nguyễn, managing director of SAP Vietnam, said. 

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